#CEXvsDEX101 is an educational initiative by Binance Square aimed at helping users understand the key differences between centralized exchanges (CEX) and decentralized exchanges (DEX). This comparison is essential for those looking to trade in the world of cryptocurrencies, as each type of exchange offers advantages and disadvantages depending on the user's needs and preferences.

🔹 Centralized Exchanges (CEX)

Examples: Binance, Coinbase, KuCoin

Advantages:

• ✅ High liquidity and fast execution: Ideal for high-volume trades and active traders.

• ✅ User-friendly interface and customer support: Eases the experience for beginners.

• ✅ Support for fiat currency deposits: Allows purchasing cryptocurrencies with traditional money.

Disadvantages:

• ❌ Asset custody: The exchange controls your private keys, which means trusting third parties.

• ❌ KYC requirements: You need to verify your identity, which may compromise your privacy.

• ❌ Risk of censorship and regulatory restrictions: They can freeze funds or limit trades based on local regulations.

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🔹 Decentralized Exchanges (DEX)

Examples: Uniswap, PancakeSwap, SushiSwap

Advantages:

• ✅ Full control of your assets: You are solely responsible for your private keys and funds.

• ✅ No need for KYC: Greater privacy and anonymity in transactions.

• ✅ Access to emerging tokens and DeFi: Ideal for exploring new projects and opportunities.

Disadvantages:

• ❌ Lower liquidity: There may be less trading volume, affecting the execution of large orders.

• ❌ Less intuitive interface: Requires more technical knowledge and understanding of DeFi tools.

• ❌ Smart contract risks: Possibility of vulnerabilities in the code that could be exploited. So don’t hesitate to support the page for more quality content.